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Blackstone Closes GCA Acquisition - Analyst Blog

On Friday, Blackstone Capital Partners V, L.P − a private
equity fund managed by
The Blackstone Group LP
(
BX
) − announced that it has completed the acquisition of GCA
Services Group from Nautic Partners, L.L.C. and other minority
shareholders. GCA provides customized facility services in the
U.S and Puerto Rico.

Blackstone anticipates this deal to offer a remarkable prospect
of investing in one of the leading firms in the business services
segment, where it has considerable proficiency. Further, GCA's
attractive market position and brisk growth offer an added
incentive. Blackstone is eagerly looking forward to work with the
exceptional management of GCA to carry on investing in the
latter's growth.

Further, management of GCA felt that the deal is likely to
stimulate GCA's gradual growth. The deal reflects GCA's strategy
to grow dynamically, which will enhance the quality of service
provided to the consumers. Moreover, Nautic Partners consider the
Blackstone-GCA partnership to be an excellent collaboration,
since Blackstone has a remarkable growth history and is further
seeking avenues to develop.

In addition to financing the deal,
Credit Suisse Group
(
CS
) and
Morgan Stanley
(
MS
) were the merger and acquisition advisors to Blackstone. The
legal counsel of the deal was Simpson Thacher & Bartlett
L.L.P.

In September, Blackstone made an agreement to buy Vivint Inc - a
security provider that offers home automation and technology
services - for a sum of about $2 billion. The deal is anticipated
to conclude by the end of this year.

Later that month, Blackstone also reached an agreement with
Capital Trust, Inc.
(
CT
) - real estate finance company - to acquire the latter's
investment unit. Further, the company is set to purchase 18.2%
stake in Capital Trust, giving it the corresponding managerial
rights. Overall, Blackstone will shell-out approximately $30
million for this deal.

Our Viewpoint

Blackstone's recent string of acquisitions reflects its strong
liquidity. Additionally, these acquisitions have the capacity to
fuel the company's overall growth in the future.

Blackstone currently retains a Zacks #2 Rank, which translates
into a short-term Buy rating.

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